Lebanese ministers to visit Iraq for fuel talks and closer cooperation
Lebanon's Finance and Energy Ministers will visit Baghdad to discuss Iraqi fuel supplies for Lebanon's power sector and strengthen ties with Iraqi officials, Finance Ministry announced Friday.
The meeting brought together Finance Minister Yassine Jaber, Minister of Energy and Water Joe Saddi, and Director General of General Security Hassan Choukeir.
According to the statement, the Lebanese ministers are scheduled to meet with Iraq's Minister of Oil, Minister of Electricity, the President of the Iraqi Republic, and other officials, as outlined in the visit's agenda.
Following the meeting, Jaber stated, 'The meeting was held to coordinate the visit that the Minister of Energy and I will make to Baghdad starting next Monday. Iraq is known to be one of the countries that stood by Lebanon during its most difficult times.'
He added, 'Let us remember that in previous years, during the brutal war on Lebanon, Iraq provided aid and supported us when there was a shortage of fuel to operate Lebanon's electricity plants.'
The visit, Jaber said, aims to express gratitude to Iraq and strengthen bilateral coordination, especially regarding pending issues related to payments for fuel previously purchased.
'Another important aspect involves the payment mechanism, which, in accordance with Lebanese law, is based on the exchange of goods and services. In addition, we will discuss a range of other matters. It is vital that we maintain strong, ongoing relations with Iraq. We are going to thank the Iraqi leadership and to plan future cooperation,' he said.
Jaber clarified that the visit does not involve immediate payment. 'There is a parliamentary-approved agreement for payments to be made through goods and services. A dedicated fund has already been established, with contributions from Electricité du Liban. Some funds have already been deposited, more will be added, and there is strong parliamentary backing to ensure continued funding.'
Jaber also discussed the visit to Iraq with president Joseph Aoun.
After the meeting, the minister said he "received his directives regarding the upcoming visit to Iraq, which will take place next Monday with the Minister of Energy."
At the end of March Iraqi Prime Minister Mohamad Chia Al-Soudani announced that his country will supply fuel to Lebanon for a period of six months.
A fuel supply contract had been concluded between Lebanon and Iraq as part of the agreement signed in the summer of 2021, which has been renewed since then. This agreement stipulates that Iraq, through SOMO (the public agency responsible for marketing Iraqi oil), will provide a monthly shipment of crude oil to a third-party company, which, in return, delivers an amount of fuel compatible with Lebanon's Electricité du Liban (EDL) power plants, with the value equivalent to the crude oil received.
On Feb. 12, Joe Saddi, the Minister of Energy and Water in the government of Nawaf Salam, signed the renewal of this agreement. The new extension, which took effect on March 1, involves a quantity ranging from 1.5 to 2 million tons over a year, which is 500,000 tons more than the amount specified in the previous contract.
Recently, EDL had rationed its supply due to a delay in the delivery of the last fuel shipment expected under the barter agreement between Iraq and Lebanon.
Lebanon's electricity sector is hindered by structural gaps and insufficient capacity to meet the country's needs, which relies on private generator owners for additional power supply.
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